Strategy’s preferred stock fell to a new low as Bitcoin’s decline pressures the firm’s $13.1 billion unrealized loss position.
Strategy’s Stretch (STRC) preferred stock dropped to a record low of $71.25 before recovering slightly to $75.30, down nearly 0.5% on the day. The decline extends a 25% fall from its engineered trading level, driven by Bitcoin’s weakness below $60,000.
Bitcoin’s 5% weekly decline to $60,130 has left Strategy’s holdings $13.1 billion underwater, intensifying scrutiny of its capital structure. Analysts highlight recurring costs tied to STRC as a growing concern for the firm’s liquidity.
Executive Chairman Michael Saylor acknowledged market volatility in an X post, reaffirming the company’s focus on disciplined capital allocation and long-term value creation amid the downturn.